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Management Discussion & Analysis
<br /> As of December 31, 2011, City enterprise funds reported a net asset position of$164,401,329, an
<br /> increase of$9,710,075 or 6.3%versus the level as of December 31, 2010.
<br /> At December 31, 2011, net asset Position includes capital assets, net of related debt of
<br /> $103,923,028, restricted net assets of$12,937,988 and unrestricted net assets of$47,540,313.
<br /> The Water and Wastewater utilities reported an increase in net assets of $1,122,395 and
<br /> $8,312,630, respectively, during 2011. During 2011, the Wastewater utility benefitted from a 9%
<br /> increase in sewer rates and from a $3.3 million capital contribution from the EDIT fund for capital
<br /> projects in connection with the combined sewer overflow program. The rates for the Water utility
<br /> did not increase but it did receive a $377,308 capital contribution during 2011.
<br /> During 2011, Century Center experienced an increase in net assets of$410,627 as the result of
<br /> capital contributions in the amount of $614,423 from capital improvements at the facility paid for
<br /> from tax increment financing and other funding sources.
<br /> Other Enterprise Funds experienced a decrease in net assets of$135,577 as total revenue was
<br /> flat and expenses increased modestly, especially in the Solid Waste Fund that had higher landfill
<br /> costs in 2011 as compared to 2010.
<br /> As of December 31, 2011, City internal service funds reported a net asset position of
<br /> $13,861,477, an increase of$648,767 or 4.9% as compared to 2010. The Liability Insurance fund
<br /> and Central Services fund reported increases in net assets of $718,068 and $302,260,
<br /> respectively. The Self-Funded Employee Benefits fund reported a decrease in net assets
<br /> $423,178 due to higher health insurance claims paid by Anthem, the City's insurance provider.
<br /> Fiduciary funds
<br /> Fiduciary funds are used to account for resources held for the benefit of parties outside the
<br /> government. The City maintains five fiduciary funds, which consist of two pension trust funds
<br /> (1925 Police Pension and 1937 Firefighter's Pension), one private-purpose trust fund (Cemetery)
<br /> and two agency funds(Payroll and Morris/Palais Royale Box Office).
<br /> $(whole) Pension Trust Private Purpose Trust
<br /> Agency
<br /> Total assets 3,885,775
<br /> 40,965 2,152,566
<br /> Total liabilities 850
<br /> 2,152,566
<br /> Net assets 3,884,925
<br /> 40,965 ,
<br /> The net assets in the pension trust fund decreased by $297,151 during 2011. The net assets in
<br /> the private purpose trust fund (Cemetery) increased by $160 due to interest earnings.
<br /> Effective in fiscal 2009, with the passage of State legislation, funding responsibility for the 1925
<br /> Police and 1937 Firefighter's Pension Funds was assumed by the State of Indiana. These
<br /> funds no longer receive property tax revenue distributions beyond fiscal 2009. The transfer of
<br /> pension responsibility to the State of Indiana is on a reimbursement basis and will not provide
<br /> additional revenue to the City for use in other property tax funded areas. The administration of the
<br /> pension plans remains the responsibility of the City.
<br /> The State of Indiana reimbursement is on a year delayed basis whereas, reimbursement in fiscal
<br /> 2011 from the State of Indiana included reimbursement for pension benefits paid by the City in
<br /> fiscal 2010. In addition, State reimbursement excludes healthcare benefit coverage to pension
<br /> plan members, which is covered under the City of South Bend pension benefit program and
<br /> which is paid from the pension trust funds.
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